£2.6M 100% LTV residential bridging loan secured against 3 properties

Area
Kent
Capital Raised
£2.6M

"Big, and complex" doesn’t even begin to describe this case. It had as many moving parts as we're ever likely to see on a finance deal. A purchase that depended on the sale of a £10M company. Of a rural property spread over two titles. Secured against three separate family-owned homes. With an incorrect report to a credit agency recorded against one property.

But entrepreneurial clients (and their brokers) are not deterred by "difficult". And the solution we arranged turned out to be the biggest-ever residential bridging loan the lender had ever approved. 

The Scenario

Our client was selling his £10M IT company, and had found the new home he wanted to buy: a substantial country house in Kent with (on a separate title) 10 acres of land and additional self-contained accommodation that his parents would live in.

Ten-million-pound companies don’t sell quickly: he needed bridge finance to cover the entire purchase price of the new property, plus stamp duty. The challenge was to secure the substantial borrowing he needed, finding enough security for a lender.

The Solution

The value of the client’s own home, and the property he was buying, wasn’t sufficient for the specialist lender who was willing to work with us on this. His parents’ home needed to be added to the security (which meant three separate valuations).

Then because this would be regulated lending limited to 12 months, we needed to allow for the possibility that the company sale might not be concluded in time. Our belt-and-braces exit plan was based on demonstrating the achievability of:

  • Refinancing the home he was selling
  • Refinancing his parents’ home
  • Selling or refinancing one or more of the five rental properties in his portfolio

This is the point at which the deal wouldn’t have been concluded if we were a company that only deals with bridging finance. What was also needed was experience in remortgaging.

Everything was proceeding well: from submission to offer was very swift. And then their Agreement in Principle was declined.

The mortgage provider for one of the buy-to-let properties had incorrectly reported a missed mortgage payment to a credit agency.

This is where we needed to advise our client to proceed in a very particular way:

  • Complaints to mortgage companies commonly take eight weeks before the review process even begins.
  • Our clients needed to formally withdraw their complaint and then telephone the mortgage company to ask for the notification to be "reviewed and rectified".
  • As soon as that was done the client passed his soft credit check.

The full application was submitted and valuations on all three properties were completed within five days. And when the funding came through, we opened a few beers.

What made the deal work?

  • Our client was patient and persistent – and flexible. When one approach didn’t work he was prepared to follow another.
  • We kept all the details of the application very "clean": eliminating anything that might be a distraction to the lender.
  • And we demonstrated in detail that the alternative exit could be achieved, with refinancing on all the properties.

Jack Spillane

Finance Broker

Bristol

0117 959 5094

Is your situation similar to this? I specialise in helping clients who need creative development finance solutions, and second-charge mortgages. Give me a call any time and we can set up a detailed discussion of the finance you need.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I will find you the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Are you in a similar situation? I am a specialist in residential and investment property finance for UK and international clients at Clifton Private Finance. Please don't hesitate to get in touch for a no-cost discussion of the finance you need.

Luther Yeates

Senior Finance Broker

Bristol

0117 244 5561

Are you looking for a similar type of property finance? I have extensive experience finding residential and investment property finance for UK and international clients. Please get in touch and we can arrange a time that's convenient for you to discuss your situation.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Are you looking for mortgage or short-term finance for residential or buy-to-let property (including HMOs)? I have extensive experience in finding property finance solutions for UK and international clients, both as individuals and limited companies. Please give me a call and let me see what I can do for you.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Is your situation similar to this? I have extensive experience of advising clients who need creative property finance solutions. Please get in touch and we can arrange a time that suits you for a detailed discussion of your requirements.

Contact Us